BLOG

Individual Tax & Information Return Due Dates

The regular unextended individual tax return date of April 15th remains unchanged. The law provides that if April 15th falls during the weekend or on a public holiday, the return is due the next working day. The Emancipation Day observed in D.C. falls on Monday, thus the 2016 income tax returns must be filed on or before April 18th, 2017. The IRS has also announced that internal processing of tax returns starts on January 23rd of 2017 and most tax refunds will be released within 21 days of submission if the return is filed electronically.

However, the early release of certain refunds is affected by the PATH Act. Taxpayers who claim the Earned Income Tax Credit (EIC), the American Opportunity Tax Credit (AOTC), or the refundable portion of the Child Tax Credit (CTC) will receive tax refunds by the end of February at earliest. The longer processing period gives IRS more time to match the information reported by the taxpayer with information provided by employers.

Another revision affects the retroactive claims of the refundable EIC, AOTC, and the CTC. Sections 204-206 of the PATH Act stipulate that these credits will not be released if any of the tax numbers used on the return is issued after the tax return due date. As a consequence, taxpayers claiming the above credits must ensure a valid SSN or ITIN is secured on or before the tax return due date, including extensions.

The Foreign Bank Account Report (FBAR) filing date has also been revamped. In 2017 and subsequent years, the FBAR must be filed by the regular unextended tax return due date of the taxpayer filing the form. Therefore, FBARs filed by individuals must be received by April 18th, 2017. An automatic 2-month extension of time to file is granted to expatriates and Americans residing overseas on the regular due date. A 6-month extension is also available if filed before April 18th, 2017.

Business Tax & Information Return Due Dates

Section 201 of the PATH Act provides that W-2 and 1099-MISC forms reporting nonemployee compensation in box 7 (self-employment income) must be filed by the payer no later than January 31st of 2017. In result, most taxpayers will receive income statements early this year. The accelerated reporting also gives IRS more time to match taxpayer information.

Alternations apply to filing a Partnership, Corporate, and Tax-Exempt entity returns. The 1065 Partnership Tax Return is now due March 15th and a new 6-month extension has been established. The 1120 C-Corporation tax returns are postponed for corporations with a fiscal year end other than December 31st or June 30th. These corporations are required to file by the end of the 4th month after fiscal year end. A 6-month extension is also available.

Finally, tax-exempt organizations filing Form 990 must do so by May 15th. A single 6-month extension eliminates the previously available 90-day extension. The table below summarizes the changes and compares the prior to current law due dates for various returns.

2017 Return Due Dates per Type of Return